Recent discovery of oil and gas reserves in the Ambalat Block has prompted the Indonesian government to quickly undertake exploration so that this "treasure" can be monetized and beneficial for the nation's interests.

However, instead of working alone, the Indonesian government will invite the Malaysian state-owned enterprise, Petronas, to collaborate with PT Pertamina (Persero) in exploring the Ambalat Block.

Plans made to conduct initial studies

Tutuka Ariadji, the Director-General of Oil and Gas at the Ministry of ESDM, stated that in the initial stage, Pertamina and Petronas will conduct a desk study or data analysis.

"We will conduct a desk study, but it will not involve seismic surveys, only using the available data. Perhaps we will do it together with Petronas," Tutuka explained when met at the Ministry of ESDM building in Jakarta on Monday, July 3, 2023.

However, Tutuka mentioned that the current desk study being conducted is carried out separately by each company using their respective data.

Tutuka underlined that this analysis is necessary to determine the quantity of hydrocarbon reserves present in the block.

"The desk study will be done separately by each company using their own data. It won't involve additional surveys. We will first see if there is any potential based on the available data. If it turns out there is no (hydrocarbon) potential after the border dispute, then what's the point?" Tutuka clarified.

History of Ambalat Block

As previously stated, the Ambalat Block was once disputed by the Indonesian and Malaysian government. The dispute emerged when both each of the country's government are in the process of studying and determining their continental shelf area and special economic zone.

On October 27, 1969, both countries signed  an agreement detailing the boundaries of the Indonesian-Malaysian continental shelf. The agreement mentioned that the Ambalat block is part of Indonesia.

However, in 1979, Malaysia violated the agreement and include the Ambalat block in the country's territorial map. The move create tension between Indonesia and Malaysia.

It was in 2009 when both countries decided to resolve the tension through a discussion held by Indonesian President Susilo Bambang Yudhoyono and Malaysian Prime Minister Abdullah Ahmad Badawi.

Later it was decided that based on the UN Convention on the Law of the Sea (UNCLOS), Ambalat is declared as part of the Indonesian territory.